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in Orland, CA
Both FHA and VA loans help Orland buyers afford homes with less cash upfront than conventional financing. The right choice depends on your military status and how much you can put down.
FHA loans work for anyone with decent credit and 3.5% down. VA loans require military service but offer zero down payment and no mortgage insurance.
FHA loans let you buy with just 3.5% down if your credit score hits 580. You'll pay mortgage insurance premiums upfront and monthly for the life of the loan.
These loans accept debt-to-income ratios up to 43% and sometimes higher with strong compensating factors. Sellers can contribute up to 6% toward your closing costs in Orland.
VA loans require no down payment and charge no monthly mortgage insurance. You pay a one-time funding fee that typically runs 2.3% for first-time use with zero down.
These loans accept credit scores as low as 580 with most lenders. You must have qualifying military service or be an eligible surviving spouse to use this benefit.
The biggest split is eligibility. VA loans beat FHA on costs but only work for veterans and active military. FHA serves everyone else who needs low down payment financing.
On a $350,000 Orland home, FHA needs $12,250 down plus monthly insurance around $240. VA needs $0 down with no monthly insurance but charges an $8,050 funding fee you can roll into the loan.
If you qualify for VA benefits, use them. The zero down payment and no mortgage insurance save you tens of thousands over the loan term compared to FHA.
FHA makes sense when you're not military-eligible and need flexible credit or income standards. It costs more than VA but less than conventional financing for buyers with smaller down payments.
Yes, both programs work for single-family homes in Glenn County including properties on larger lots. USDA loans offer another zero-down option for qualifying rural areas.
VA loans typically price 0.25% to 0.5% lower than FHA rates. Rates vary by borrower profile and market conditions, so compare current quotes for both programs.
Yes, veterans with FHA loans can refinance into VA loans to eliminate mortgage insurance. You'll pay the VA funding fee but save long-term on monthly payments.
Both FHA and VA appraisals require similar property standards. Some sellers worry about VA repairs, but experienced agents know both programs close reliably.
Most lenders want 580 minimum for both FHA and VA in Glenn County. Higher scores around 620 unlock better rates and easier approval.